Weekly Publications

MARKET REPORT

As more country imposed a nation-wide lockdown amid the Corona Virus outbreak, the latest being India which 21 days total lockdown order came in 24 March 2020, market this week showed a mixed response as only India reported an increase. In local market, Malabar black pepper was reported with an increase of 4% when compared to the previous week averaging at USD 4,198 per Mt. Indonesia black and white pepper were reported with a 6% deficit respectively when compared to the previous week, averaging at USD 1,432 per Mt for black pepper and USD 2,620 per Mt for white pepper. The decrease of Indonesia black and white pepper was highly contributed to the weakening of Indonesian Rupiah against US Dollar (6% depreciation to an average of IDR 16,413 @ USD 1). Malaysian black and white pepper were reported stable averaging at USD 1,691 per Mt for black pepper and USD 3,034 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported stable at an average of USD 1,607 per Mt whilst Viet Nam white pepper was reported with an increase of 1% as opposed to the previous week, averaging at USD 2,426 per Mt. Sri Lanka black pepper was traded with 2% deficit as opposed to the previous week at an average of USD 2,791 per Mt which could be contributed to the weakening of Sri Lankan Rupee against US Dollar. China white pepper was reported stable and traded its white pepper at an average of USD 4,200 per Mt locally.

International market also showed a mixed response with only India reported an increase. India black pepper was reported with an increase of 3% when compared to the previous week and was traded internationally at an average of USD 4,462 per Mt. Indonesia black and white pepper were reported with a 6% deficit respectively as compared to the previous week, averaging at USD 1,779 per Mt for black pepper and USD 3,119 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable and unchanged. Whilst, China white pepper was reported steady and was traded at an average of USD 4,400 per Mt.

IMPORT OF PEPPER BY SOUTH AFRICA

South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa, it is bounded to the south by 2,798 kilometers of coastline of Southern Africa stretching along the South Atlantic and Indian Oceans. South Africa considered as one of pepper producing country despite in a smaller scale, pepper cultivation in South Africa is only reported in the Lowfeld of Mpumalanga Province and KwaZulu Natal Province. However, South Africa's pepper production is unable to meet the domestic consumption which resulting to the import of pepper by South Africa as it become the second largest importer of pepper in Africa in the past three years.

In 2017, South Africa was reported to have imported a total 4,995 Mt of pepper which 71% or 3,523 Mt of it comprised of whole pepper while 29% or 1,472 Mt of it was ground pepper. The average import of pepper by South Africa in 2017 was reported to be 416 Mt per month with the highest quantity recorded in February with 817 Mt. The total expenditure of pepper imported by South Africa was reported to be as high as USD 25.6 Million, recording an average price of the total pepper imported by South Africa at USD 4,496 per Mt for whole pepper and USD 6,631 Per Mt for ground pepper.

Year 2018 saw a decreasing trend in term of quantity of pepper imported by South Africa. South Africa was reported to have recorded a total of 3,728 Mt which 63% or 2,352 Mt of it comprised of whole pepper and 37% or 1,376 Mt of it was ground pepper. Thus, recording 25% decrease as compared to the same period in 2017. The average pepper imported by South Africa was reported at 311 Mt per month which peaked in August with 413 Mt. In accordance with decreasing in terms of quantity, South Africa was recorded to have spent 32% less on its pepper import, totaling at USD 17.4 Million and recording an average price of the total pepper imported by South Africa at USD 3,930 per Mt for whole pepper and USD 5,949 per Mt for ground pepper or a decrease by 13% and 10% respectively as compared to 2017.

Pepper import by South Africa in 2019 was reported with an increase of 15% as compared with the same period in 2018, totaling at 4,297 Mt which comprised of 63% or 2,721 Mt of whole pepper and 37% or 1,576 Mt of ground pepper. The total expenditure of pepper imported by South Africa in 2019 decreased by 15% as compared to the same period on the previous year, totaling at USD 14.8 Million. Thus, recording an average price of the total pepper imported by South Africa at USD 2,953 per Mt for whole pepper and USD 4,349 per Mt for ground pepper or a decrease by 25% and 27% respectively as compared to 2018.

The top five countries of origins of South Africa pepper in 2019 were reported to be Viet Nam with 3,086 Mt (an increase of 21% as compared with 2018), Brazil with 391 Mt (an increase of 148%), Thailand with 234 Mt (an increase of 42%), India with 146 Mt (an increase of 18%) and China with 144 Mt (a decrease of 18%). The decreased of South Africa import from China could be contributed to South Africa preference of importing from other origins countries which offered more competitive price such as Viet Nam (an increase by 534 Mt as compared to the same period in 2018) and Brazil (an increase by 233 Mt).